Private Companies are subject to following restrictions under the above mentioned Section :
- Right to transfer shares is restricted
- Number of members limited to 50 :
- Joint holders to be counted as one member for the purpose of deciding the number of members
- Employees; whether retired or not who have shares due to being in employment, won’t be counted as members for the purpose of this definition
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- Prohibition on invitation to public to subscribe for any shares or debentures
- Prohibition on acceptance and invitation of deposits from persons other than its members, directors or their relatives
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